CC RESOLUTION 5218RESOLUTION NO. 5218
A RESOLUTION OF THE EL SEGUNDO CITY COUNCIL ESTABLISHING
THE BUSINESS LICENSE TAX MONEY -BACK GUARANTEE REFUND
PROGRAM
The City Council of the City of El Segundo does resolve as follows:
SECTION 1: The City Council finds that:
A. On March 4, 2020, the Governor proclaimed a State of Emergency relating
to the coronavirus identified as COVID-19 and the worldwide spread of a
new disease against which most people do not have immunity;
B. On March 11, 2020, the World Health Organization declared the
coronavirus identified as COVID-19 to be a pandemic:
C. On March 13, 2020, the President declared a National Emergency relating
to COVID-19;
D. On March 17, 2020, the City Council ratified the City Manager's
proclamation of a local emergency within the City;
E. The COVID-19 pandemic has pushed the world into a recession, and the
pandemic's economic consequences are severely impacting the United
States and Southern California;
F. As of the date of this resolution, approximately 38 million Americans have
filed for unemployment since the emergency was declared; such a sharp
and staggering increase has never been seen before, not even at the peak
of the 2009 global financial crisis;
G. The City Council is aware of the challenges local businesses are facing
during this time, and desires to foster new businesses as much as possible;
H. Currently, new businesses in the City pay an initial business license tax that
is based on the taxpayer's best estimate of the average quarterly number
of employees, square feet and business locations within the City over the
course of the calendar year; new businesses may seek an adjustment to
the initial tax when the business renews its business license (ESMC § 4-2-
5);
1. In these uncertain times, the City Council desires to provide new businesses
the opportunity to open a business in the City without having to worry about
one year's worth of business license tax, in the event the business decides
to leave the City within one year.
RESOLUTION NO. 5218
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SECTION 2: Program Adoption. The City Council hereby adopts the "Business License
Tax Money -Back Guarantee Refund Program." Effective the date of this resolution, if a
new business opens in the City and then decides to close the business within twelve
months of opening, the business may apply to the City to have its business license tax
refunded. Notwithstanding any provision of Title 4 of the EI Segundo Municipal Code to
the contrary, upon application to the City, a qualifying business shall be refunded its
business license tax. This program is only available for a business that has at least 5,000
square feet of floor area and a minimum of 10 employees at its location(s) within the
City. A business may only use this program once and the program will not apply to any
business that opens after January 1, 2023.
SECTION 3: Authorization. The City Council hereby authorizes the City Manager or
designee to take all actions needed to effectuate this resolution.
SECTION 4: This Resolution will become effective immediately upon adoption and will
remain effective unless repealed or superseded.
SECTION 5: The City Clerk will certify to the passage and adoption of this Resolution; will
enter the same in the book of original Resolutions of said City; and will make a minute of
the passage and adoption thereof in the record of proceedings of the City Council of said
City, in the minutes of the meeting at which the same is passed and adopted.
PASSED, APPROVED AND ADOPTED this 31d day of June, 2020.
APPROVED AS TO FORM:
1 00
Mark D. Hensley, Cit&dbrney
Drew B's,
Mayor
RESOLUTION NO. 5218
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ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of EI Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Resolution No. 5218 was duly passed and adopted by said City Council, approved and
signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a
regular meeting of said Council held on the 31d day of June 2020, and the same was so
passed and adopted by the following vote:
AYES: Mayor Boyles, Mayor Pro Tem Pimentel, Council Member Pirsztuk, Council
Member Nicol, and Council Member Giroux
NOES: None
ABSENT: None
ABSTAIN: None
ZOA
Tracy Wer, r, City'"Clerk
d
RESOLUTION NO. 5218
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